Plan would open Highland Park Theater soon

Council skeptical of community group's vision

The Highland Park Theater in Highland Park, Thursday, January 16, 2013. The city-owned building was closed in May 2012 due to building code violations. (Heather Charles, Chicago Tribune)

While city leaders look for long-term options to redevelop the shuttered city-owned Highland Park Theater, a group of community members submitted an intermediary vision to reopen the aging building by this fall.

City Council members generally resisted the proposal, which calls for a $700,000 budget — including a $500,000 mortgage on the building — saying it might hamstring future options and place an additional financial burden on a city asset they'd like to remove from the books.

The group proposal was presented by resident and local property owner Larry Hillman on July 8 — the same day the city released an accelerated, 30-day "Request for Expressions of Interest and Qualifications" document, aimed at corralling more long-term concepts.

The proposal, called "A Community Endeavor," prioritizes expediency — seeking to create another draw that brings customers to Highland Park's downtown during a more long-term process for the city to find a new owner or operator for the building.

"It has a detrimental impact right now to the local businesses because it's not open, and it's kind of a beacon of distress that we'd rather not like to be broadcasting," Hillman said.

The proposal includes spending $700,000 to reopen the theater's two ground-floor theaters within 60 days, before reconfiguring the ground floor as a "theater level" and the second floor as a "performing art learning level."

It includes a $500,000 line of credit with a local bank secured against the property itself, $100,000 in cash contributions and $100,000 in in-kind contributions from contractors and suppliers. It also suggests a tax increment financing district to repay the loan and a professionally managed fundraising program.

Even Councilman Tony Blumberg, who has been the most vocal to push for quickly reopening the theater as the city explores long-term options, was skeptical about the financials in Hillman's plan — particularly the $500,000 mortgage.

"I don't really see any way around that. By using our building as collateral for a loan for your group is going to impair the ability of the city to the do the most effective and satisfactory disposition of the building, long-term," Blumberg said. "So while I very much want to get the building open in the short-term, because of what that would mean for surrounding businesses, I don't want to tie my hands instantly in terms of some plans we're about to hear about very quickly."

The city purchased the theater in 2009 for $2.1 million with the intention of continuing to show movies. It was open until May 2012, when an inspection revealed significant safety issues.

Hillman's proposal includes a July 2012 estimate from Highland Park fire Chief Pat Tannerof $90,000 in required safety and code improvements to reopen one of the four theaters. City officials have cautioned that the figures need to be updated, and that the proposal's intention to reopen the entire first floor — and include a banquet service — would require additional code requirements to be met.

Hillman said he believed the loan would be a net benefit to the city, and the improvements it would finance — like new seats, carpet and a projection system — would aid in finding a long-term solution for the shuttered building.

"Yes, you're right, it is creating a little bit more of a burden that the subsequent owner or leaser of the building is going to contend with," Hillman said. "But on the other hand, I think they're going to get more benefit because of the money being spent on these improvements than the cost of the $500,000 (loan)," Hillman said.

At the council's request, Hillman said his group would consider submitting an application as part of the request for interested parties process, which has an Aug. 9 deadline.